Alliant Energy Corp (NASDAQ: LNT)

Sector: Utilities Industry: Utilities - Regulated Electric CIK: 0000352541
Market Cap 17.78 Bn
P/B 2.92
P/E 26.14
P/S 4.63
ROIC (Qtr) 5.95
Div Yield % 3.09
Rev 1y % (Qtr) 11.93
Total Debt (Qtr) 11.92 Bn
Debt/Equity (Qtr) 1.63
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About

Investment thesis

Bull case

  • Tangible assets of 24.63B provide robust 58.92x coverage of other current liabilities 418M, indicating strong asset backing.
  • Operating cash flow of 1.15B provides strong 4.11x coverage of inventory 281M, indicating efficient inventory management.
  • Retained earnings of 4.23B provide strong 10.12x coverage of other current liabilities 418M, indicating earnings quality.
  • Retained earnings of 4.23B represent substantial 0.58x of equity 7.31B, indicating strong internal capital generation.
  • Cash reserves of 503M exceed inventory value of 281M by 1.79x, indicating strong liquidity and inventory management.

Bear case

  • Operating cash flow of 1.15B barely covers its investment activities of (2.21B), with a coverage ratio of -0.52, indicating heavy reliance on external financing for growth which may not be sustainable in a tighter credit environment.
  • Operating cash flow of 1.15B provides thin coverage of dividend payments of (514M) with a -2.25 ratio, suggesting potential dividend sustainability issues if operational performance deteriorates.
  • Free cash flow of (1.10B) provides weak coverage of capital expenditures of 2.26B, with a -0.49 ratio suggesting additional external financing needs for growth initiatives.
  • Operating cash flow of 1.15B provides minimal -9.78x coverage of tax expenses of (118M), suggesting potential tax planning inefficiencies or unsustainable tax positions.
  • Operating earnings of 1.19B show weak coverage of depreciation charges of 832M, with a 1.43 ratio indicating high capital intensity and potential reinvestment needs.

Peer comparison

Companies in the Utilities - Regulated Electric
S.No. Ticker Company Market Cap P/E P/S Total Debt (Qtr)
1 NEE Nextera Energy Inc 191.44 Bn 28.01 6.98 95.62 Bn
2 SO Southern Co 97.42 Bn 30.98 4.46 73.75 Bn
3 AEP American Electric Power Co Inc 64.38 Bn 33.83 4.24 0.00 Bn
4 DUK Duke Energy CORP 56.47 Bn 30.61 3.87 89.65 Bn
5 EXC Exelon Corp 48.53 Bn 17.53 2.00 50.08 Bn
6 ETR Entergy Corp /De/ 45.74 Bn 25.29 3.59 30.45 Bn
7 PEG Public Service Enterprise Group Inc 43.93 Bn 35.35 4.41 23.51 Bn
8 XEL Xcel Energy Inc 41.10 Bn 37.21 3.75 35.52 Bn

Industry comparisons

Current Valuation Value Ind Avg Percentile
EV to Assets EV to Assets 1.04 1.01
EV to Cash from Ops. EV/CFO 37.24 12.45
EV to Debt EV to Debt 2.15 171.92
EV to EBIT EV/EBIT 27.37 19.12
EV to EBITDA EV/EBITDA 17.03 15.67
EV to Free Cash Flow [EV/FCF] EV/FCF -53.93 -28.25
EV to Market Cap EV to Market Cap 1.44 1.84
EV to Revenue EV/Rev 6.68 4.72
Price to Book Value [P/B] P/B 2.92 2.60
Price to Earnings [P/E] P/E 26.14 18.53
Dividend Metrics Value Ind Avg Percentile
Dividend Coverage Ratio Div Coverage (Qtr) 1.59 1.94
Dividend Payout Ratio % Div Payout % (Qtr) 63.10 62.23
Dividend per Basic Share Div per Share (Qtr) 2.03 2.02
FCF Dividend Payout Ratio % FCF Div Payout % (Qtr) -47.26 -218.37
Interest Coverage Int. cover (Qtr) 2.43 2.83
Growth Metrics Value Ind Avg Percentile
Capex Growth (1y) % Capex 1y % (Qtr) -24.81 -68.90
Cash and Equivalents Growth (1y) % Cash & Equiv 1y % (Qtr) -39.18 73.92
Dividend Growth (1y) % Div 1y % (Qtr) 5.83 4.05
EBIAT Growth (1y) % EBIAT 1y % (Qtr) 18.34 15.47
EBITDA Growth (1y) % EBITDA 1y % (Qtr) 18.22 13.33
EBIT Growth (1y) % EBIT 1y % (Qtr) 20.18 15.81
EBT Growth (1y) % EBT 1y % (Qtr) 25.67 19.29
EPS Growth (1y) % EPS 1y % (Qtr) 23.26 21.26
FCF Growth (1y) % FCF 1y % (Qtr) -69.48 -35.52
Gross Profit Growth (1y) % Gross Profit 1y % (Qtr) 10.96 11.97
Liquidity Ratios Value Ind Avg Percentile
Asset Utilization Ratio Asset Util Ratio (Qtr) 0.17 0.22
Cash Payout Ratio Cash Payout (Qtr) 0.15 0.11
Cash Ratio Cash Ratio (Qtr) 0.23 0.98
Current Ratio Curr Ratio (Qtr) 0.83 2.72
Debt to Equity Ratio Debt/Equity (Qtr) 1.63 1.45
Interest Cover Ratio Int Coverage (Qtr) 2.43 2.83
Times Interest Earned Times Interest Earned (Qtr) 2.43 2.83
Profitability Value Ind Avg Percentile
EBITDA Margin % EBITDA Margin % (Qtr) 47.30 37.94
EBIT Margin % EBIT Margin % (Qtr) 27.86 316.94
EBT Margin % EBT Margin % (Qtr) 16.37 14.36
Gross Margin % Gross Margin % (Qtr) 56.60 41.20
Net Profit Margin % Net Margin % (Qtr) 19.10 12.57